At $0.85, SAND is trading inside of long-term support. It is moving in the direction of an old lowering resistance line. SAND is now trading within a brief declining wedge. Then, when would the sandbox (SAND) price bounce?
The Sandbox (SAND) may break out of its short-term bullish trend, but a decline below the lows of June seems more plausible in the long run.
Since hitting an all-time high of $8.48 in November 2021, SAND has been declining beneath a descending resistance line. The current decline has brought the price to a low of $0.73 in June 2022. The $0.85 region was confirmed to be support by the subsequent bounce.
The price then made yet another try to break over the falling resistance line, but the move failed. It is currently very close to returning to the $0.85 range.
SAND collapses
On August 15, SAND deviated from a rising support line, as seen on the daily chart. After multiple excursions above the $1.35 horizontal area, the breakdown occurred. It's probable that the negative trend is a direct effect of the continuous decline in the price of Bitcoin (BTC).
SAND is only marginally higher than its $0.73 lows from June. There are currently no bullish reversal indicators in place. The RSI is oversold, declining, and has not produced any bullish divergence. It is also under a descending resistance line.
The likelihood of the price falling below its June lows is present. In that case, the 1.61 external Fib retracement of the most recent upward rise, located at $0.27, would be the next closest support point.
Temporal pattern
On the six-hour chart, SAND may be trading inside a descending wedge, to sum up. A breakout from the wedge is anticipated because it is regarded as a bullish pattern.
The six-hour RSI has also produced positive divergence, boosting the likelihood of a breakout.
The most likely outcome, however, would be for the breakout to take SAND to the $1 to $1.10 barrier area before resuming downward trend, given the bearishness from the higher time period.
